We should provide incentives for every positive contributor who builds the new world.
We believe that a sound system must have a correct output mode that meets the demands of the community. Therefore, in BoringDAO, nearly 70% of the tokens are generated by mining.
Users who participate in minting mining will receive BOR rewards. 30% of the BOR of the whole system is generated through mining. The mining model is preliminarily set as follows: after users finish minting, they get BOR in proportion to the respective minting commission, and meanwhile, the output is reduced according to the surplus supply of BOR in the whole system.
Core Formula for Minting and Mining:
Amount_BOR Refers to the amount of BOR that a mining user earns at a time, and Price_asset refers to the current minting price and amount of the asset, Amount_asset refers to the minting commission rate, Price_BOR refers to the current price of BOR, and Reduction Factor is the current output reduction coefficient.
For example, if Alice mints 10 oBTC at a certain time, the current price of BTC is 12,000 USDT, and the current price of BOR is 100 USDT and current network fee is 0.0008 oBTC, then Alice can mine (200%×12000×(10×0.2%+0.0008))/100×100%=4.992 BOR in this minting.
The output reduction coefficient (Reduction Factor) is related to the supply. Whenever 10k BOR is mined, the output reduction coefficient will be adjusted. The initial value of the output reduction coefficient is 100%, and the new output reduction coefficient is 80% of the previous output reduction coefficient.
The formula of the output reduction coefficient is as follows:
Among them, Mined_BOR refers to the BOR that has been mined, and INT function returns the integer part of a decimal number by rounding down to the integer. For example, when the ten-thousandth BOR is mined, the output of the whole BOR will be reduced by 20%, thus allowing long-term incentives of the system.
The change process is shown in:
For example, when the twenty thousandth BOR is mined, the output reduction coefficient of the whole system becomes 64%. In other words, if Alice deposits 10 BTC before the first output reduction, she can get 4.992 BOR, but after the second output reduction, if she also deposits 10 BTC, she can only get 4.992×64%=3.195 BOR.